Imputation of real estate income for non-primary vacant homes

The Directorate General of Taxes (DGT) has issued a relevant ruling regarding the taxation of urban properties that remain unoccupied. The inquiry focuses on determining whether the ownership of a vacant home, which does not hold the status of a primary residence, entails the obligation to impute real estate income in Personal Income Tax (IRPF).

What the DGT has ruled

After analyzing current regulations, the advisory body has determined that the imputation of real estate income is indeed applicable in this scenario. The legal basis is found in Article 85.1 of Law 35/2006, which establishes that urban properties that are not used for economic activities nor are they generators of capital income must impute income.

The rule specifically excludes the taxpayer's primary residence from this obligation. Therefore, if the property in question is an unoccupied urban home and does not meet the requirements to be considered a primary residence, it is subject to the imputation of income according to the established legal framework.

What this means for you

This criterion has a direct impact on individuals who own urban properties that they do not use as their main residence. If you are the owner of a home that is vacant and is not intended for rent or another economic activity, you must take into account that the Administration considers such property to generate income.

It is fundamental to distinguish between a primary residence and other urban properties. While the former is exempt from this imputation, any other urban property that is not used for an economic activity or that does not produce capital income will be subject to this tax treatment.

What you should do

When owning unoccupied properties, it is necessary to verify the tax classification of each one. It is essential to confirm whether they meet the requirements of a primary residence or if, on the contrary, they must be declared under the real estate income imputation regime.

Since the regulations establish specific criteria for the exclusion from this tax, it is recommended to analyze the particular situation of each property to ensure compliance with the corresponding tax obligations.